SB1403 - 502R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 41, chapter 4, Arizona Revised Statutes, is amended by adding article 4, to read:

ARTICLE 4. DIGITAL ARIZONA INFRASTRUCTURE PROGRAM

START_STATUTE41-751. Definitions

In this article, unless the context otherwise requires:

1. "Broadband infrastructure" Means facilities and equipment, including cables, fibers, conduits, ducts, towers, cabinets, vaults, manholes, handholes and other associated equipment and appurtenances in rights‑of‑way that are used directly or indirectly in providing wireline and wireless broadband services.

2. "Broadband infrastructure project" means constructing, acquiring, providing, developing, operating, maintaining, leasing or improving broadband infrastructure in rights‑of‑way for providing broadband service in unserved rural areas of this state.

3. "Broadband provider" means any entity that provides for sale or resale of wholesale or retail broadband services in this state and is recognized as an eligible telecommunications carrier by the Arizona corporation commission or meets federal communications commission and industry carrier class service guidelines or is a political subdivision that has statutory authority to provide telecommunications services.

4. "Broadband service":

(a) Means providing access and transport to the internet, computer processing, information storage or protocol conversion at a rate of at least one megabit per second in either the upstream or downstream direction as established by the federal communications commission.

(b) Does not include information content or service applications provided over the access service.

5. "Chief information officer" means the director of the department of administration or the director's designee.

6. "Cost‑based rate" means a lease rate that is comprised of all direct and actual associated indirect costs of obtaining and maintaining the associated right‑of‑way, broadband conduit and innerduct or microduct and must be equitably allocated among users of the associated right-of-way, broadband conduit and innerduct or microduct.

7. "Council" means the digital Arizona council appointed pursuant to section 41-753.

8. "Governmental entity" means a county or special taxing district organized pursuant to title 48.

9. "Right‑of‑way":

(a) Means any area on, below or above a public highway, road, street, alley, building, public easement or other corridor or space dedicated for public travel or use, that is subject to the jurisdiction or control of a participating governmental entity or is owned by this state.

(b) Does not include:

(i) municipal authority with respect to municipal rights‑of‑way, easements, permitting, licensing, regulations, inspections or other legitimate functions and responsibilities of incorporated communities.

(ii) rIGHTS-OF-WAY OF POWER, WATER OR GAS UTILITY ENTITIES.

(iii) rIGHTS-OF-WAY ACROSS STATE TRUST LAND.

10. "Rural area" means an area that is located either:

(a) Outside the municipal boundary of any city or town in this state with a population of ten thousand or more persons.

(b) Outside federal metropolitan and micropolitan statistical areas.

11. "Unserved Area" means an area that meets all of the following:

(a) Is outside federal metropolitan and micropolitan statistical areas.

(b) If in an incorporated city or town, the population of that city or town is ten thousand persons or less.

(c) Is not served by any fixed broadband provider providing broadband services in excess of the minimum speeds adopted in federal communications commission publication, 11-161, paragraph 146, 768 kbps downstream and 200 kbps upstream. END_STATUTE

START_STATUTE41-752. Digital Arizona infrastructure program

The digital Arizona infrastructure program is established in the department of administration and shall be administered by the chief information officer. The chief information officer in carrying out the purposes of this article is not required to pay taxes or assessments on any property, activities or monies derived from the activities of the program. END_STATUTE

START_STATUTE41-753. Powers and duties

A. The chief information officer may:

1. Apply for, accept and administer grants and other financial assistance from the United States government and from all other public and private sources to carry out his or her responsibilities under this article.

2. Recommend guidelines and best practices under applicable law for broadband infrastructure in rights‑of‑way and public easements.

3. Recommend guidelines and best practices under applicable law for fairly sharing and pricing broadband infrastructure in rights‑of‑way and public easements.

4. Lease and coordinate the leasing of broadband infrastructure in rights‑of‑way as authorized by this article at cost-based rates to broadband providers to include direct administrative costs.

B. The chief information officer shall:

1. Develop, prioritize and adopt selection criteria for broadband infrastructure projects in rights‑of‑way pursuant to this article and with consideration for recommendations submitted by governmental and educational entities, telecommunications businesses, information services, medical services and statewide trade and business organizations.

2. Deposit all monies collected under this article in the digital Arizona infrastructure fund established by section 41‑755.

3. Appoint a digital Arizona council that will serve as an advisory council to the chief information officer in carrying out his or her duties pursuant to this article. The council shall be representative of broadband interests in the broadband provider, government and user communities.END_STATUTE

START_STATUTE41-754. State rights‑of‑way and easements; access; application process

A. The chief information officer shall adopt policies for coordinating with state agencies and consulting with local and national telecommunications providers for the use of state‑owned rights‑of‑way for broadband infrastructure requirements.

B. the chief information officer shall work with the digital arizona council to develop a comprehensive broadband infrastructure in rights-of-way plan for serving unserved rural areas of this state as determined by the chief information officer.

c. The chief information officer shall:

1. Establish criteria and forms for broadband providers to apply for access to and leasing of broadband infrastructure in rights‑of‑way and public easements as authorized pursuant to this article.

2. Establish a procedure for receiving, reviewing, evaluating and approving or disapproving on its merits each administratively complete and correct application for access to broadband infrastructure in rights‑of‑way and public easements as authorized pursuant to this article.

3. Adopt policies and procedures to establish criteria by which access to broadband infrastructure in rights‑of‑way and public easements as authorized pursuant to this article will be determined. The criteria must include an assessment of the technical and financial applications on a fair and equitable basis and must provide at least one provider-separated conduit or microduct and securable ingress and egress means at the request of the provider. a service provider authorized by statute, license, certificate, franchise, permit or other grant of authority issued by this state or a county, municipality or other governmental unit or agency of this state, to construct, lease, own, control, operate and maintain in, on and along public streets, roads and highways, facilities and equipment, including cable fibers, conduits, ducts, towers, cabinets, vaults, manholes, handholes and other associated equipment and appurtenances that are used directly or indirectly in providing broadband service may elect to participate in the program set forth under this article on a project-specific basis, but does not waive, surrender, lose or diminish its rights in any respect.

4. Adopt policies and procedures for establishing priority of applications for access to broadband infrastructure in rights‑of‑way and public easements as authorized pursuant to this article.

5. Approve or disapprove applications for broadband infrastructure in rights‑of‑way and public easements and notify the applicant of the action within a reasonable period after the date of the application.

6. Determine order and priority of the applications under this article based on merits of the applications.

D. If an application is approved, the chief information officer may condition the approval on assurances he or she considers necessary for ensuring that the broadband infrastructure in rights‑of‑way or public easements will be used consistent with the applicable law and terms of the approved application. END_STATUTE

START_STATUTE41-755. Digital Arizona infrastructure fund

A. The digital Arizona infrastructure fund is established under the department of administration consisting of digital infrastructure lease proceeds and other monies collected under this article. Monies in the fund may only be used for the purposes of this article. The chief information officer shall administer the fund. monies in the fund are subject to legislative appropriation.

B. On notice from the chief information officer, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund.END_STATUTE

START_STATUTE41-756. Applicability

A. THE SCOPE OF THE program OVER RIGHTS-OF-WAY IS LIMITED TO STATE‑OWNED RIGHTS-OF-WAY.

B. THIS ARTICLE DOES NOT APPLY TO THE DEPARTMENT OF TRANSPORTATION OR ANY RIGHTS-OF-WAY OWNED, LICENSED OR LEASED BY THE DEPARTMENT OF TRANSPORTATION.

C. NOTHING IN THIS ARTICLE DIMINISHES, IMPINGES ON OR OTHERWISE AFFECTS EXISTING STATE, MUNICIPAL OR COUNTY AUTHORITY WITH RESPECT TO RIGHTS‑OF-WAY, EASEMENTS, PERMITTING, LICENSING, REGULATIONS, INSPECTIONS OR OTHER LEGITIMATE FUNCTIONS AND RESPONSIBILITIES OF THis STATE or INCORPORATED COMMUNITIES OR COUNTIES in this state.

D. THIS article SHALL NOT BE CONSTRUED TO GRANT THE CHIEF INFORMATION OFFICER ANY AUTHORITY TO GOVERN OR LIMIT ANY PROCEDURES, TERMS OR CONDITIONS FOR GRANTING, ESTABLISHING OR MAINTAINING RIGHTS-OF-WAY ACROSS STATE TRUST LAND, WHICH AUTHORITY REMAINS WITH THE STATE LAND COMMISSIONER AND STATE LAND DEPARTMENT.

E. Nothing in this article limits the explicit authority of the Arizona corporation commission under the laws of this state or federal law. END_STATUTE

Sec. 2. Section 41-3016.06, Arizona Revised Statutes, is amended to read:

START_STATUTE41-3016.06. Department of administration; termination July 1, 2016

A. The department of administration terminates on July 1, 2016.

B. Title 41, chapter 4, articles 1, 2, 3, 4, 5 and 7 and chapter 32 are repealed on January 1, 2017. END_STATUTE